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Bill Ackman·HERTZ GLOBAL HLDGS INC
HTZ

Hertz Global Hldgs — Financial Results

AI Overview

Hertz Is Still Losing Money, But Losses Are Narrowing Sharply

Metric20252024
Total Revenue$8,504M$9,049M
Net Loss$(703)M$(3,137)M
Adjusted Corporate EBITDA$(339)M$(1,541)M

Hertz posted a net loss of $703 million in 2025, which sounds alarming — but it is 78% smaller than the $3.1 billion loss in 2024. The improvement was not driven by revenue growth (revenues actually fell 6%), but by a dramatic reduction in vehicle-related costs. The company remains unprofitable on an operating basis, and that is the central issue investors need to watch.

Fleet Cost Improvements Are the Biggest Story of the Year

Metric20252024
Vehicle Depreciation Expense$1,927M$3,611M
Americas Depreciation Per Unit Per Month$310$587

Vehicle depreciation — what it costs Hertz to own its fleet over time — fell by nearly half, dropping $1.7 billion year-over-year. This reflects a "fleet refresh" that brought in cheaper vehicles, improved used-car market conditions boosting resale values, and a shift to selling vehicles through more profitable channels. In 2024, Hertz was losing money on each car it sold; in 2025, it was making money on those sales. This is the clearest sign of operational progress.

Revenue Is Falling Due to Lower Prices and Fewer Rental Days

Metric20252024
Americas Total RPD (revenue per rental day)$56.49$59.17
Americas Transaction Days119.5M124.8M

Total RPD (the average revenue Hertz earns per day a car is rented) fell 5% in the Americas, and total rental days dropped 4%. Both pricing and volume declined across most customer channels. This means demand for Hertz's cars is softening, and the company has less pricing power than a year ago — a concern when costs are still high.

International Business Is a Bright Spot

Metric20252024
International Revenue$1,745M$1,651M
International Adjusted EBITDA$124M$31M
International Vehicle Utilization79%76%

Outside the Americas, Hertz is actually growing. International revenue rose 6%, vehicle utilization (the share of the fleet actively earning rental revenue) improved to 79%, and segment profit jumped from $31 million to $124 million. This segment is currently the only part of the business generating positive operating profit.

Debt Levels and Interest Costs Remain a Heavy Burden

Metric20252024
Total Interest Expense$1,077M$959M
Corporate Liquidity$1,489M$1,842M

Hertz carries enormous debt — over $17 billion in vehicle and non-vehicle obligations combined — and interest payments rose 12% to $1.1 billion in 2025. Available corporate liquidity (cash plus undrawn credit lines) fell from $1.84 billion to $1.49 billion, and this was further reduced by a $346 million legal payment made in January 2026. The company has committed to purchasing another $9.4 billion worth of vehicles in the near term, financed mostly by new debt.

One-Time Gains Helped, But Do Not Reflect Ongoing Business Health

In 2025, Hertz recorded a $144 million gain from selling certain physical assets (like real estate) and a $154 million gain from a legal class action settlement. Together, these added roughly $298 million to the bottom line. These are genuine cash inflows, but they are non-recurring — meaning they flattered the 2025 results and will not repeat in 2026.